Elon Musk says he’ll give free Space Exploration Technologies (SpaceX) shares to all the kids in America. He was short on details, talking about one each, some time next year.

But we don’t need freebies from the world’s first trillionaire to get into space investing. And we needn’t trust our cash to just one company, or one man either.

A look at the share price chart below shows Seraphim Space Investment Trust‘s (LSE: SSIT) impressive record, though with a bit of volatility. Admittedly, SpaceX has only been on the stock market since June, and there’s a long way to go. But a potentially safer pooled space investment like Seraphim surely has to be worth digging into…

Leader of the pack

As an investment trust, Seraphim offers diversification. But one Finnish company, ICEYE, accounts for almost half its investments. Here’s how the company describes itself:

The world’s largest and most advanced SAR satellite constellation … We deliver continuous monitoring capabilities to detect and respond to changes in any location on Earth.

ICEYE’s official site

It operates a fleet of small radar-imaging satellites. They can monitor activity on Earth regularly, and supply data and intelligence to governments, defence agencies, and commercial customers. It all uses something called synthetic aperture radar (SAR), which can capture images at night and through clouds, smoke, and other adverse conditions.

So security, intelligence, defence… that’s what it’s all about. Right now, I’d rather invest in that than in going to Mars.

The rest of the portfolio

The second-largest holding is ALL.SPACE, a British satellite company specialising in terminals that can connect to multiple satellite networks simultaneously. Reliable access to multiple networks is key. And again, this is something heavily based on defence. ALL.SPACE makes up less than 15% of Seraphim’s holdings by value.

Two more come close to 10% each — HawkEye 360, a US-listed satellite-based defence and intelligence company, and the Italian D-Orbit which provides satellite delivery services.

I think we’re getting the theme here — and why we don’t see any SpaceX shares on the books ( it doesn’t seem to fit with the trust’s strategy).

At the moment, the Seraphim Space Investment Trust valuation is heavily based on what its holdings are worth. And with full-year results (15 October), the company revealed a net asset value of 240p per ordinary share.

Risky business?

With the shares trading at 178p, at the time of writing, we’re looking at a 26% discount. And that’s pretty high for the range we typically see across UK investment trusts.

The discount looks tempting. But it’s also a window on the risk the market sees. Buying any space stock today has to be a speculative move. And I might not rate it as a sleep-easy retirement strategy. But for growth investors, I think Seraphim has to be worth considering.

So will I buy some? Actually, I just might. But only with a small amount of my Stocks and Shares ISA cash, with the rest spread over a nicely diversified selection…

Should you invest £5,000 in Seraphim Space Investment Trust Plc right now?

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Alan Oscroft does not hold any positions in the companies mentioned.